Lender appetite formultifamily deals has not waned. In fact, lenders remain fiercelycompetitive on multifamily product, and that includes constructionfinancing opportunities, particularly for experienced developersand sponsors. Consumer demand is fueling the market activity alongwith new loan products, like green financing, for multifamily.

“Lenders continue to be very interested in multifamily projects,as consumer demand and rents remain strong in many markets,”Jennifer Bojorquez, a partner at TroutmanSanders, tells GlobeSt.com. “The appetite for permanentfinancing on multifamily projects remains strong, and lenderscontinue to experience a lot of competition for thesedeals.  The deal flow for construction financing alsoremains steady, and we're continuing to see a number of new deals,albeit with experienced multifamily developers.”

Green programs from Fannie and Freddie have also contributed toan increase in lender appetite for multifamily deals. “In recentyears, the GSE's have offered meaningful rate reductions andadditional loan proceeds for projects that incorporate renovationsfor energy efficiency and water conservation,” adds Bojorquez. “I'mseeing a good number of deals with such green renovations. Providedthat the green deals hit specified requirements, they do not counttoward the agencies' lending caps.  We're also seeing agrowing number of standard construction deals with affordabilitycomponents, as a shortage of affordable housing persists and localgovernments prove to be laser-focused on the issue. Manynew deals also include commercial elements, consistent withconsumer demand. Lenders are adapting their underwriting to accountfor these product changes.”